Real Estate Market In India

The Indian real estate is an essential part of Indian economy .The contribution of the real estate sector to India's gross domestic product (GDP) has been estimated at 6.3 per cent in 2013.

The sector embraces of four sub-sectors- housing, retail, hospitality, and commercial. While housing contributes to five-six percent of the country’s GDP, the remaining three sub-sectors are also growing at a rapid pace, meeting the increasing infra structural needs.

The Indian real estate sector has attracted significant investment over the past few years. The country is ranked 20th among the top global markets for real estate investment in 2012, with investments worth US$ 3.4 billion during the year.

Current Scenario of real estate investments -

The real estate sector in India is on the verge of a boom, thanks to the ambitious plan of building ‘100 smart cites’ all across the country by the newly formed Government in May 2014. With the RBI offering incentives for infrastructure financing and creation of Real Estate Investment Trusts (REITs), the real estate sector is finding it safer to invest money on bigger projects with long-term goals. Also, the PM’s mantra of ‘Make-in-India’ and relaxation of FDI norms in construction sector would attract significant investment from all across the globe.

Benefits for Investors :-

Investors can expect more return on investment (ROI) as the sector is expected to witness exponential growth in the years to come. The real estate sector in India is going through a steady pace. If we see the stock market that is going through difficult times for last few years due to the global economic slowdown, real estate is definitely a smart choice for investment.

With lower interest rates on housing projects, people can put more money and reap the benefit as the demand is going to increase in the infrastructure sector.

Save money by investing in real estate projects as you can get tax benefits on investment made in a property.

In a recent survey, 32 percent investors showed interest in the newly proposed, ‘Smart Cities’ by the Government of India. Investment in any of the ‘Smart Cities’ would be a safe option as there will be great demand of property in an ultra-modern city with all amenities in place.

The flexible payment options in India make it easier for an investor to buy property.

India is witnessing high urbanization. By 2050, 843 million people will be living in cities all across the country. These bigger cities could be a good option for buying property as the migration towards the bigger cities is going to increase in the years to come.

The rapidly increasing middle class in India has created a new set of housing demands. So, small affordable house are sure to witness great demand.

Two-third of the population of India is between 15 years and 64 years, making Indian demography younger. There will be great demand of houses as the concept of nuclear family and higher degree of consumerism is catching up fast. Realtors can benefit by investing in budget housing projects.

Rental prices are likely to remain high in all the metro cities, making it a good option to invest money in office buildings particularly. The increasing real estate price along with the rental prices can give the investor double benefit on investment.

Foreign investors can benefit a lot as the value of Rupee in comparison to dollar is still very low. Depreciated value of Rupee would give investors more money on investments.

NRIs are the biggest gainer as Government policies encourages smooth and hassle-free investment in the real estate sector. CREDAI (Confederation of Real Estate Developers Association of India) floats special offers and schemes for NRI investments.

This is one of the safest investment markets with a very good growth potential. Just like any other investment you have to make informed choices for the same. We at Interland Consulting use our expertise and data to analyse the investment potential in all these markets.